Samsung Life Insurance : BoD Approves FY2016 Financial Statements and Declares Annual Dividend

IR Newsletter

January 25th, 2017

Samsung Life Investor Relations Samsung Life BoD Approves FY2016 Financial Statements and Declares Annual Dividend

On January 25th 2017, Samsung Life ("the Company") held its Board of Directors meeting, through which the Board approved the Company's FY2016 financial statements and declared an annual dividend of KRW 1,200 per share, totaling KRW 215.5 billion.

Consolidated net profit for FY2016 jumped +76% to KRW 2,128.5 billion versus FY2015's KRW 1,211.2 billion, due to a KRW 1,192.4 billion after-tax gain on the bargain purchase of Samsung Card and Samsung Securities shares. Excluding this large non-cash gain, consolidated net profit decreased year-on-year to KRW 936.1 billion due to earnings pressure from the negative impact of lower interest rates.

In deciding the annual dividend, the Board also used this KRW 936.1 billion which excludes the gain on the bargain purchase of Samsung Card and Samsung Securities as the basis of calculation. The Board's decision, which translates to a payout ratio of 23.0% and falls short of the Company's target of 30%, was temporarily influenced by uncertainties presented by the imminent release of the final IFRS 17 accounting standards in 2017 and the pending introduction of a new Korean solvency framework.

However, the Board remains committed to the Company's long-standing capital policy of returning 60% of its annual net profit to shareholders in the form of either dividends or share buybacks. Hence we will consider conducting share repurchases at an appropriate time in 2017.

Details of the Company's FY2016 earnings results and management strategy for 2017 will be delivered in the 2016 Earnings & EV Results Presentation taking place on Friday, February 17th, 2017, at 4 pm Korea Standard Time. We look forward to your participation then.

Thank you very much.